Overview → Why an FAQ matters
Many mistakes with cryptocurrency custody happen because simple questions go unanswered or myths persist. This FAQ is designed to provide concise, actionable answers to the most common questions about hardware wallets, recovery, and operational safety. Use these Q&As to onboard new users, create training material, or include as part of a support knowledge base.
Q: Are hardware wallets completely foolproof?
A: No device is invulnerable. Hardware wallets mitigate host-based attacks by keeping private keys on an isolated device. However, risks remain: tampered supply chains, social engineering, poor backups, and mistaken passphrase handling. Reduce risk by buying from verified channels, verifying device integrity, using durable backups, and practicing recovery procedures.
Q: Can I store my seed in the cloud or on my phone?
A: Never store your seed phrase in the cloud, email, or camera roll. These are readily accessible to attackers. The seed should be recorded on paper or, ideally, on a metal backup that resists fire and water. Treat the seed as the master key to your funds; loss or theft of the seed is equivalent to loss of custody.
Q: Is Bluetooth safe to use?
A: Bluetooth adds convenience but introduces a wireless attack surface. If you choose to use Bluetooth-capable devices, ensure firmware is current, pair only in secure environments, and always confirm transactions on-device. For very large balances, wired or fully air-gapped workflows reduce exposure.
Q: If my device is stolen, can I still recover funds?
A: Yes — provided you have the recovery seed and any passphrase used. The seed alone allows you to recreate the wallet on a new device. If you used a passphrase and lose it, funds in that hidden wallet cannot be recovered without the passphrase.
Q: What about split backups or Shamir?
A: Splitting recovery across multiple shares (Shamir or manual split) distributes risk and reduces single-point failure. This requires careful management and clear policies for reconstruction. For organizations, combining multi-sig with split backups enhances resilience and flexibility.
Closing guidance
- ✓ Verify devices on arrival • ✓ Use durable backups • ✓ Verify on-device for transactions • ✓ Test recovery
★ Replace myths with procedures — teach plain, testable steps that preserve access and protect assets.